Milk price surge tied to fiscal cliff

Marion Barnes of Effort has seven children, ranging in age from 5 to 17. They drink a lot of milk.

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By KEITH STEVENSON

poconorecord.com

By KEITH STEVENSON

Posted Dec. 30, 2012 at 12:01 AM

By KEITH STEVENSON
Posted Dec. 30, 2012 at 12:01 AM

» Social News

Marion Barnes of Effort has seven children, ranging in age from 5 to 17. They drink a lot of milk.

"I would say a gallon a day we drink between all of us," said Barnes.

In addition, she does a lot of baking from scratch to keep her costs down. All of this makes milk a very important commodity in her household.

So when the announcement was made that the failure of Congress to pass a new farm bill could make milk prices spike, it concerned her.

"We spend about $25 per week on milk. It would double what I spend," Barnes explained.

She conceded that there was very little she could do about the potential price increase. "Probably we would just drink less ... it's the same as it is with gas. I don't drive as much now because it's so expensive."

She noted that there are other ways to get milk, but they are not quite practical for most people. "I don't want a cow, but I joked with the kids that we could get a goat." Barnes said the joke was met with a septuplet of disgusted faces.

The price of a gallon of milk could rise to $6 to $8 a gallon next year if Congress fails to pass a new farm bill before Jan. 1, U.S. Sen. Bob Casey warned Friday, though some cautioned any price hike could be smaller and not immediate.

Casey, a Democrat, urged the Republican-led House to approve a Senate farm bill that passed overwhelmingly in June with bipartisan support.

"If the House doesn't take action, we could revert to a 1940s-era law that could waste taxpayer dollars and cause milk prices to skyrocket," he said. "By refusing to take up the farm bill, the House is forcing the Department of Agriculture to implement a dairy policy which is decades old. It could cost the government, by one estimate, $12 billion to $15 billion."

A farm bill has been tied to the economic "fiscal cliff," with The Associated Press reporting agriculture industry leaders hope the farm legislation can be added to any final fiscal package.

Tim Moyer, secretary of the Milk Marketing Board, confirmed prices could rise "significantly," though not right away. He did not have a price estimate.

The federal government has already announced January milk prices, so they won't be affected, meaning any price hike would not happen next month, he said.

Arden Tewksbury, manager of the Progressive Agricultural Association, who lives in Meshoppen, said the state Milk Marketing Board told him the worst-case scenario is a price hike in northeast Pennsylvania from slightly more than $4 a gallon for whole milk to about $5.64 a gallon.

That is hard to swallow for some Pocono Record Facebook readers. Jody Deibler has six people in her household. "We go through 4 gallons a week. Guess I'm making powdered milk," she posted.

Christopher McCabe has six children. "How much do you think we drink?" he asked.

Evelyn DiNovo goes through a gallon a day with three children.

So does Daisy Ellerbee. "I think I'm gonna run out and get a cow!" she said.

The Citizens' Voice contributed to this report through The Associated Press.